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Council on Revenues increases projections

MEDIA RELEASE

Gov. Neil Abercrombie responded to the state Council on Revenues revised forecast reaffirming its previous General Fund tax revenue projection for the current fiscal year and increasing its projections for the next three fiscal years.

For the upcoming biennium, tax revenue is projected to grow 8 percent in 2014 and then 7 percent in 2015. Those compounded increases would mean $86 million more revenue over the next two years.

Abercrombie said:

“Our economy is strong and appears to be getting stronger. Hawaii continues to lead the U.S. amongst states with significant revenue growth possibilities. We must remember that the Council predictions relate to tax revenue growth. We expect to see continued improvement in the construction industry, real estate market, agriculture and small business activity as well the hospitality industry. All of our local industries will benefit from our improving economy.

“I am very optimistic about the prospects for our local economy. My Administration has fostered increased activity in our economy and that translates into increased tax revenue due to that activity. I think the Council forecast supports the proposition that economic activity is strong and improving. These are good signs to support optimism for our residents and businesses.”

House Committee Finance Chairperson Sylvia Luke said:

“I am very pleased that the latest forecast on the state’s economy by the Council on Revenues shows that our financial picture remains positive. The state budget that we passed this year was a balanced plan crafted with a commitment to stabilizing and developing our economy while reinvesting in the future of our state. With revenue projections remaining stable we are on track to meet the needs of our citizens.”

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